Currently the individual inheritance tax (IHT) allowance is £325,000.
There is no inheritance tax payable between married couples or civil partners. Therefore a maximum allowance of £650,000 (£325,000 x2) can be achieved on second passing. This does not apply to divorcees or unmarried couples.
If your estate value exceeds the allowances then everything over the nil band threshold is taxable at the eye watering rate of 40%, unless you qualify for resident’s nil-rate tax band.
Inheritance tax is a complicated issue so it is wise to seek professional help and guidance. Please contact us for more information in Inheritance Tax planning.